Chancellor’s Autumn Statement – December 2014

Chancellor’s Autumn Statement – December 2014

In addition to the headline changes to Stamp Duty, the following were announced in Chancellor George Osborne’s December 2014 Autumn Statement:-

  • ISAs will retain their tax-free status when passed on to a spouse or civil partner following death. The ISA limit will increase again from April by a further £240 to £15,240;
  • The abolition of the 55% tax charge on pension death benefits within drawdown policies was confirmed. Allied to this, income tax will no longer be payable on death benefits paid from annuities where death occurs before age 75;
  • Flexi-access drawdown plans taken out from 6th April 2015 will allow unrestricted access to income. A new Annual Allowance of £10,000 will apply where flexible benefits are taken to avoid abuse. Existing capped drawdown policies may continue with the standard Annual Allowance of currently £40,000 continuing to apply;
  • The State Pension will rise to £115.95 from 15/16. The actual amount of the new single tier State Pension will be confirmed in the Autumn 2015;
  • The Personal Allowance will rise to £10,600 from £10,000 from 6th April 2015 and the income above which higher rate tax is payable rises to £42,385 from £41, 865 presently.